MORAGA — Higher-than-expected administrative and legal costs have put Moraga’s budget in a more tenuous position than originally projected, according to a report by the town’s finance director.

The town will end the year with a $1.4 million general fund reserve, and it has $2.4 million in one-time developer fees from the Palos Colorados project.

It is largely those developers’ fees that are keeping the town from having cashflow problems, said Finance Director Joan Streit.

The staff report paints a grim picture.

“It should be noted that the fund balances continue to shrink and spending continues to precede the actual receipt of monies in most of the funds,” Streit wrote in her report to the Town Council. In short, spending is outpacing income.

Revenue for the fiscal year is now projected to be $75,641 lower than originally budgeted. That recession-related decline is smaller than many other cities in the county — Walnut Creek’s projected revenue dropped $5.4 million — have suffered because Moraga does not depend on sales tax revenue and its property values have remained stable.

But expenditures are also higher than expected; they are now projected to be $193,206 higher than originally budgeted by the end of the fiscal year. Nearly half of that — $91,000 — is in additional legal expenses, largely because of the open space measures on last November’s ballot.

In all, the town will end the year with a general fund reserve of $1.38 million out of a $6.8 million general fund. That reserve was originally projected to be $1.54 million.

The town does have $2.4 million in funds from one-time development fees. That money is not restricted, so the Town Council could use it for other needs if it wanted, Streit said.

The town will also get access to money from the county’s Measure C transportation sales tax once a checklist on its housing plans is approved by county planners, said Planning Director Lori Salamack.

The town plans to submit the checklist closer to the June 30 deadline in order to include as much information as possible on the Downtown Specific Plan, Salamack said, to show the town is considering higher-density housing that could be affordable to lower-income residents.

Otto Warmbier was arrested in January 2016 at the end of a brief tourist visit to North Korea. He had been medically evacuated and was being treated at the University of Cincinnati Medical Center when he died at age 22.